My Name is Paul H Cosentino. I started this Blog in 2011 because of what I believe to be wrongdoings in town government. This Blog is to keep the citizens of Templeton informed. It is also for the citizens of Templeton to post their comments and concerns.

Paul working for you.

Friday, May 5, 2017

And #49 Is...

#49 rank by Mercatus Center

Summary
On the basis of its fiscal solvency in five separate categories,
Massachusetts ranks 49th among the US states and Puerto Rico for its
fiscal health. On a cash basis, Massachusetts has between 0.39 and 1.12
times the cash needed to cover short-term liabilities. Revenues cover 96
percent of expenses, producing a deficit of $342 per capita. The state
is reliant on debt financing, with a negative net asset ratio of −0.94
and long-term liability per capita of $6,237. Total liabilities exceed
assets by 53 percent. Total debt is $26.73 billion. Unfunded pension
liabilities are $94.45 billion on a guaranteed-to-be-paid basis, and
other postemployment benefits (OPEB) add $15.38 billion.

Key Terms

Cash solvency measures whether a state has enough cash to
cover its short-term bills, which include accounts payable, vouchers,
warrants, and short-term debt. (Massachusetts ranks 50th.)

Budget solvency measures whether a state can cover its fiscal
year spending using current revenues. Did it run a shortfall during the
year? (Massachusetts ranks 48th.)

Long-run solvency measures whether a state has a hedge
against large long-term liabilities. Are enough assets available to
cushion the state from potential shocks or long-term fiscal
risks? (Massachusetts ranks 48th.)

Service-level solvency measures how high taxes, revenues, and
spending are when compared to state personal income. Do states have
enough “fiscal slack”? If spending commitments demand more revenues, are
states in a good position to increase taxes without harming the
economy? Is spending high or low relative to the tax base?
(Massachusetts ranks 31st.)

Trust fund solvency measures how much debt a state has. How
large are unfunded pension liabilities, OPEB liabilities, and state debt
compared to the state personal income? (Massachusetts ranks 20th.)

For a complete explanation of the methodology used to calculate
Massachusetts’s fiscal health rankings, see Eileen Norcross and Olivia
Gonzalez, “Ranking the States by Fiscal Condition,” 2016 ed. (Mercatus
Research, Mercatus Center at George Mason University, Arlington, VA,
June 2016).
For more data on your state, including indicators such as pension liabilities and state debt, click “Download the PDF.”